America’s tough talk: What SA business leaders heard in Washington

Trump

Cape Town – South African business and labour leaders reportedly met with US politicians in Washington to address trade imbalances and strained diplomatic relations.

Daily Investor, quoted  Johann Kotze, chief executive officer of the country’s biggest farm lobby, as saying that the discussions focused on South Africa’s $4 billion trade surplus with the US, driven by car and agricultural exports, and concerns over the future of the African Growth and Opportunity Act (Agoa), which grants duty-free access to US markets.

“There was a sense that it’s freebie and there’s not something back for America,” Kotze, the head of AgriSA, said of the perception of Agoa by US senators and members of Congress that the group met.

“Reciprocal trade is a big thing for America.”

US lawmakers reportedly view Agoa as a one-sided benefit for South Africa, prompting calls for more reciprocal trade.

The political tension between the two nations, fuelled by past disputes under US President Donald Trump, has further complicated relations.

Bilateral priorities 

The South African delegation, including representatives from AgriSA, the Congress of South African Trade Unions, and major corporations, sought insights into US concerns and potential solutions, such as increasing purchases of US agricultural technology and granting greater access to critical minerals, Kotze said.

The US is set to decide whether to extend, modify, or terminate Agoa when it expires in September, he said.

Meanwhile, South Africa’s government is also engaging with US officials separately.

A high-level delegation, led by G20 Sherpa and Director-General of the Department of International Relations and Cooperation (Dirco), Zane Dangor, recently engaged in a series of meetings with senior United States officials to address recent tensions and clarify South Africa’s domestic policies.

During their visit, the delegation met with key figures, including the White House National Security Council’s Africa Director, the Acting Assistant Secretary of State for African Affairs, and representatives from the US Treasury Department.

Discussions focused on bilateral priorities and sought to dispel misconceptions about South Africa’s policies, particularly regarding land expropriation and equity laws, SABC’s Sherwin Bryce-Pease reported.

These meetings follow Trump’s executive order issued on February 7, which cut aid to South Africa, citing concerns over alleged racial discrimination and land expropriation without compensation.

Dirco indicated that such dialogues will continue at various levels of government to enhance mutual understanding and cooperation.

“We believe these dialogues will assist to refine the current administration’s understanding of South Africa’s position on critical matters, fostering a more nuanced perspective,” EWN quoted Spokesperson Chrispin Phiri as saying.

This marks the first high-level interaction between South African and US officials since the ousting of Ambassador Ebrahim Rasool by the US State Department in March. The delegation’s visit aimed to build on discussions initiated by Rasool before his removal.

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